State seizes Vegas lending company

Kevin Rademacher

Wednesday, June 11, 2003 | 11:16 a.m.

The state today took possession of Global Express Capital Mortgage.

A takeover order, issued by the state Financial Institutions Division, comes despite a District Court lawsuit filed by Global Express, seeking a restraining order against the FID. The suit sought protection from the appointment of a conservator to run the Las Vegas company.

Today's order appoints Ben Harker as conservator over the company. The move was based on the result of findings contained in a recent examination report and other complaints currently under investigation, a statement released by the FID said.

In addition to seeking a restraining order, Global's suit also claims that the Financial Institutions Division released confidential information about a 2002 review of the company, and seeks a restraining order preventing the discussion of the review's findings.

The suit said Global Express challenged the review's findings after an informal hearing on April 16, and on May 31 gave up its Nevada mortgage broker license.

On June 3 Global Express also requested FID approval to close its principal office in Las Vegas, the suit said.

The suit, which does not detail any of the disputed review's findings, said the placement of a conservator would constitute a disciplinary action.

"The commissioner cannot enter an order taking disciplinary action before the FID conducts a hearing on the matter giving Global the opportunity to present its case," the suit said. The suit cited a report in the Las Vegas Review-Journal that indicated that Walshaw intended to place a conservator over the company this week.

"Global believes that the commissioner will circumvent Nevada law and place a conservator over Global without due process," the suit said.

Amanda Getzoff, a spokeswoman for the state Department of Business and Industry, which oversees FID, said the state has not yet been served with the lawsuit and would not comment further as of press time today.

The court has not yet acted on the request for a restraining order.